M&I to Start Internet Bank Under Existing Charter

Marshall & Ilsley Corp. of Milwaukee said it intends to launch an Internet bank within an institution it has already chartered, M&I Bank FSB.

A handful of other banks have announced plans to form Internet banks under separate charters, thus putting the costs of Internet banking on a separate balance sheet.

The on-line bank would add home equity and deposit products to Marshall & Ilsley's existing Internet-based mortgage loan service, mortgagebot.com. That unit currently serves California, New York, and Texas residents; it is to be launched nationwide in midsummer as part of the Internet bank.

A spokesman said mortgagebot.com, which closes more than $30 million of mortgages a month, returned its investment after two months of operation and M&I expects to build on that success.

Scott Happ, president and chief executive officer of mortgagebot.com, will also be president of the new Internet banking division.

M&I Data Services, which processes Internet banking for more than 70 banks nationwide, will provide the technology and services for the on-line bank.

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